The agreement uses one-quarter of the company's $100 million uncommitted accordion credit facility. An accordion credit facility is an option that allows a company to increase its line of credit or similar type of liability with a lender. The feature is often used when a company thinks it will need more working capital to fund a future expansion.
BlueLinx added PNC Bank into its lender portfolio, with the bank joining Wells Fargo Bank, Regions Bank, Bank of America, JP Morgan Chase, and TD Bank in financing the building-material distributor, which has struggled to regain its footing post-recession.
The Atlanta-based distributor posted a $12.6 million loss during the first quarter of 2013 on sales of $503.2 million compared to a loss of $11 million on sales of $448.8 million for the same period a year earlier. The company last saw a profit in 2006, when it netted $15.8 million.
BlueLinx has yet to come forward with full details of its proposed restructuring, but in an announcement June 26 it hinted that five of its more than 60 distribution centers are being considered for closure or sale. The company expects the review and restructuring of its operations--including headquarters jobs but exempting a decision on the five distribution centers--to save up to $10 million annually and generate $27 million in operating cash.